ANKARA
Manufacturing activity declined slightly in Turkey in August, as industry was less confident about the economy than in July.
Manufacturing capacity utilization dipped to 74.80 percent from 75.90 in the previous month.
A survey of manufacturing confidence showed a slight decline to 103.7 in August from 105.4 in July.
Analysts attributed the slight change to concern about Turkish lira volatility. Still, solid German manufacturing activity has supported Turkish industry in August. Germany is the largest market for Turkish intermediate goods.
The preliminary German manufacturing Purchasing Manager's Index in August rose to a 16-month high of 53.2 from July’s 51.8, Markit Economics reported on Friday. On Tuesday, the German Ifo monthly confidence index rose to 108.3 points for August from 108 in July.
"But Turkish manufacturer concerns about the depreciation of the lira may have dented confidence somewhat in the sector in August," economist Attila Yesilada of Turkish securities analyst firm Global Source Partners told Anadolu Agency.
The Turkish lira is currently trading at about 2.93 to the dollar, and has lost about 20 percent of its value against the U.S. currency since the beginning of the year.
